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Novak Inc. makes unfinished bookcases that it sells for $ 6 0 . Production costs are $ 3 8 variable and $ 1 0 fixed.
Novak Inc. makes unfinished bookcases that it sells for $ Production costs are $ variable and $ fixed. Because it has unused
capacity, Novak is considering finishing the bookcases and selling them for $ Variable finishing costs are expected to be $ per unit
with no increase in fixed costs.
Prepare an analysis on a perunit basis that shows whether Novak should sell unfinished or finished bookcases. If an amount reduces
the net income then enter with a negative sign preceding the number, eg or parenthesis, eg
Variable cost per unit
Fixed cost per unit
Total per unit cost
Net income per unitBlossom Manufacturing incurs unit costs of $ $ variable and $ fixed in making a subassembly part for its finished product A supplier offers to make of the parts for $ per unit If it accepts the offer, Blossom will save all variable costs and $ of fixed costs Prepare an analysis showing the total cost savings, if any, that Blossom will realize by buying the part. Round per unit answers to decimal ploces, eg If an amoumt restuces the net income then enter with a negative sign precieding the number, g or parrentheris es Atternpts: of usedCurrent Attempt in Progress Blossom Manufacturing incurs unit costs of $ $ variable and $ fixed in making a sub assembly part for its finished product A supplier offers to make of the parts for $ per unit. If it accepts the offer. Blossom will save all variable costs and $ of fixed costs. Prepare an analysis showing the total cost savings, if any that Blossom will realize by buying the part. Round per unit answers to decimal places, eg If an amournt neducres the net income then enter wilb a reggotine sign preceding the number, eg ar parmentheris, eg The decision should be to
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